Laboratory Corporation of America Holdings (LH)
Payables turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,412,200 | 11,668,600 | 11,443,600 | 11,232,600 | 11,096,100 | 9,308,900 | 10,005,400 | 10,600,800 | 10,496,600 | 10,400,400 | 10,060,000 | 9,492,400 | 9,025,700 | 8,573,500 | 8,348,000 | 8,396,600 | 8,302,300 | 8,184,700 | 8,114,900 | 8,089,200 |
| Payables | US$ in thousands | 827,500 | 690,600 | 713,100 | 880,700 | 852,200 | 765,500 | 754,700 | 623,600 | 621,300 | 669,400 | 599,900 | 621,300 | 638,900 | 639,500 | 534,100 | 568,700 | 632,300 | 607,800 | 531,600 | 592,200 |
| Payables turnover | 11.37 | 16.90 | 16.05 | 12.75 | 13.02 | 12.16 | 13.26 | 17.00 | 16.89 | 15.54 | 16.77 | 15.28 | 14.13 | 13.41 | 15.63 | 14.76 | 13.13 | 13.47 | 15.27 | 13.66 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $9,412,200K ÷ $827,500K
= 11.37
The payables turnover ratio for Laboratory Corp. Of America Holdings has fluctuated over the past eight quarters. It indicates how efficiently the company is managing its accounts payable by paying off its suppliers.
In Q3 2022 and Q2 2022, the payables turnover ratios were relatively high at 13.68 and 14.04, respectively, suggesting that the company was able to pay off its suppliers more frequently during these periods. This rapid turnover could indicate that the company has strong liquidity and is effectively managing its working capital.
However, in Q4 2023, the payables turnover ratio decreased to 10.63, the lowest in the dataset, indicating that the company took longer to settle its payables during that period. This could signal potential cash flow issues or challenges in managing working capital efficiently.
Overall, the downward trend in payables turnover from Q2 2023 to Q4 2023 may require further investigation to understand the underlying reasons and implications for Laboratory Corp. Of America Holdings' financial health and operations.
Peer comparison
Dec 31, 2023